March 6, 2024 (Wed)
12:10 PM
Professor of Law
Harris Manchester College
University of Oxford
The Global Minimum Tax and the Future of International Taxation
On 8 November 2021 over 140 countries agreed to the most significant reform of the international business tax system in a century. The existing system is riddled with problems and is in dire need of reform. Many politicians and commentators lauded this reform, particularly the introduction of a global minimum tax. Larry Summers, for example, opined that it was “arguably the most significant international economic pact of the 21st century so far.” This paper asks whether the hype around the global minimum tax is justified and reflects on the future of international business taxation. The main part of the paper acknowledges that agreement over the global minimum tax constitutes a remarkable political and technical achievement. Despite the hype, however, it is unclear whether the global minimum tax improves the system overall. Moreover, this was to be expected, as the destabilising incentives generated by the existing international tax system are still in place following the reform. These incentives undermine the global minimum tax itself and continue to undermine the system as a whole. The paper concludes with some brief reflections on the future of the international tax system. The global minimum tax may have propped up the existing system, but it also made it harder to reform the system fundamentally. Because of the global minimum tax, we are more likely to be stuck with a dysfunctional international tax system for years to come.
Talk Location:
Columbia Law School
435 West 116th St., NY, NY
Jerome Greene Hall is at the northeast corner of Amsterdam Ave and 116th St.
The main entrance is on the north side of 116th St. between Amsterdam Ave. & Morningside Drive.